UNAIR NEWS – In fiqh, waqf is interpreted as one of the jariyah charities in the form of never-ending prosperity. Therefore, most waqif or waqf givers are in the form of land used as mosques, musala, and schools. However, with excellent and creative management, waqf can be used as an economic instrument of Islamic-based development.
The statement was conveyed by Prof Dr Nurul Huda, Commissioner of the Indonesian Waqf Board, in a webinar series of Gemilang Ramadan events held by UNAIR’s Center for Social Fund Management (PUSPAS) on Monday, April 5. He explained that several modern waqf management models could produce wider benefits. One of them is through an investment approach.
He gave an example of the construction of the zam-zam tower in Saudi Arabia. Prof Nurul Huda explained that the construction of the zam-zam tower is one of the developments of waqf assets through the issuance of waqf sukuk abroad.
“At first, zam-zam tower was built on waqf land, then the construction costs were obtained from a long-term contract with Bin Ladin Group and Mushaat Real Estate companies that issue the sukuk,” he said in a webinar entitled Philanthropy of the Waqf Movement for Social Welfare.
He continued, during the contract period, the proceeds from the zam-zam tower and hotel rental were used to provide rewards for investors. “When the contract period expires, it will be returned to nadzir (waqf manager, Ed) zam-zam tower to be managed as a social fund,” he said.
The Islamic Religious Council of Singapore (MUIS) has done a similar thing in building the Bencoolen Complex. At that time, MUIS collaborated with Warees Investment as management to form a joint venture and issued sukuk. Then, sukuk building is commercialized by Ascott International to provide returns to investors up to the contract term.
“Those are some examples of waqf management through an investment approach, so if nadzir is not in capacity, they can cooperate with external parties experienced in their fields,” he said.
In addition to sukuk, Prof Nurul Huda also explained the Cash Deposit Waqf model developed by Social Islamic Bank Limited (SIBL). In this model, waqf money is stored in the bank for a certain period of time, whose profits are used for specific purposes set by wakif to prosper the people.
In the end, Prof Nurul Huda appreciated PUSPAS’ steps in managing waqf funds obtained. He hopes that PUSPAS can continue to be consistent so that it becomes one of the role models of waqf management in Indonesia.
“Some waqf management is very prospective to be developed, so we can change the classic perception of waqf which many Muslims understand is only in the form of donations in the form of fixed assets,” he concluded. (*)
Author: Ivan Syahrial Abidin
Editor: Binti Q Masruroh
